PVH Corp. Reports 2024 Second Quarter Earnings Above Guidance

Rhea-AI Summary

PVH Corp. reported Q2 2024 earnings exceeding guidance, with GAAP EPS at $2.80 and non-GAAP EPS at $3.01, surpassing the projected $2.25. The company's revenue declined 6% to $2.074 billion, aligning with expectations.

Key factors included a 3% reduction from selling the Heritage Brands women's intimates business. Gross margin improved by 250 basis points to 60.1%. Inventory levels were down 12% year-over-year.

For full-year 2024, PVH reaffirmed its revenue outlook, projecting a 6%-7% decrease. The GAAP operating margin is expected to drop slightly to 9.8%, while non-GAAP remains flat at 10.1%. PVH raised its EPS guidance, projecting it in a range of $11.20-$11.45 on a GAAP basis and $11.55-$11.80 on a non-GAAP basis, benefiting from a tax settlement.

Positive

• Q2 GAAP EPS of $2.80 exceeded guidance of $2.25.
• Q2 non-GAAP EPS of $3.01 surpassed guidance of $2.25.
• Gross margin increased by 250 basis points to 60.1%.
• Inventory decreased by 12% year-over-year.
• Full-year GAAP EPS guidance raised to $11.20-$11.45.
• Full-year non-GAAP EPS guidance raised to $11.55-$11.80.

Negative

• Q2 revenue declined by 6% to $2.074 billion.
• Full-year revenue projected to decrease by 6%-7%.
• GAAP operating margin projected to drop to 9.8% from 10.1%.

Insights

Financial Analyst

PVH Corp's Q2 results show resilience amid challenging conditions. Revenue declined 6% to $2.074 billion, but exceeded guidance. The 250 basis point gross margin expansion to 60.1% is particularly impressive, driven by favorable channel mix and lower costs. EPS beat expectations, with non-GAAP EPS at $3.01 vs $2.25 guidance.

The company's focus on disciplined execution and cost management is paying off. The 12% inventory reduction is a positive sign for future margin potential. While challenges persist in Asia Pacific, North America shows modest growth. The raised full-year EPS guidance, despite maintaining revenue outlook, indicates confidence in ongoing efficiency improvements.

Investors should note the $0.55 per share tax benefit, which significantly boosted EPS. Excluding this, results still exceeded expectations, but to a lesser degree. The continued share repurchases ($225 million YTD) demonstrate commitment to shareholder returns.

Market Research Analyst

PVH's results reflect broader industry trends. The strategic reduction in European sales to improve quality aligns with the premium positioning of Calvin Klein and Tommy Hilfiger. The 1% growth in North America for these brands is encouraging given the challenging retail environment.

The 6% decline in digital commerce warrants attention, as e-commerce typically outperforms brick-and-mortar. This may be partly due to strategic decisions, but could also indicate increased competition or shifts in consumer behavior. The company's focus on full-priced selling and reduced clearance is a positive strategy in the current inflationary environment.

Looking ahead, PVH's outlook suggests cautious optimism. The maintained revenue guidance amid economic uncertainties indicates resilience, while the improved EPS outlook reflects confidence in operational efficiencies. The company's ability to navigate supply chain issues and inflationary pressures will be important in the coming quarters.

• Second quarter
  • Revenue: Decreased 6% to $2.074 billion compared to the prior year period (decreased 5% on a constant currency basis), in line with guidance of a decrease of 6% to 7% (decrease of 5% to 6% on a constant currency basis)
  • EPS:
    • GAAP basis: $2.80 exceeded guidance of approximately $2.25
    • Non-GAAP basis: $3.01 exceeded guidance of approximately $2.25 (there were no non-GAAP exclusions in the guidance)
    • Included a tax benefit of approximately $0.55 per share related to the favorable settlement of a multi-year audit in an international jurisdiction, the results of which were not known at the time of guidance
• Full year outlook
  • Revenue: Reaffirms projected decrease of 6% to 7% (decrease 6% to 7% on a constant currency basis)
  • Operating margin:
    • GAAP basis: Projected to be approximately 9.8% compared to approximately 10.1% previously, which includes restructuring charges now expected to be incurred in 2024
    • Non-GAAP basis: Reaffirms outlook of approximately flat compared to 10.1% in 2023
  • EPS:
    • GAAP basis: Raising to a range of $11.20 to $11.45 compared to $11.15 to $11.40 previously
    • Non-GAAP basis: Raising to a range of $11.55 to $11.80 compared to $11.00 to $11.25 previously due to the tax benefit resulting from the favorable settlement of the multi-year audit discussed above

NEW YORK--(BUSINESS WIRE)-- PVH Corp. [NYSE: PVH] today reported its 2024 second quarter results and updated its full year EPS outlook.

Stefan Larsson, Chief Executive Officer, commented, “We delivered on our top- and bottom-line commitments and beat our earnings guidance for the second quarter, led by our disciplined execution of the PVH+ Plan. For both Calvin Klein and Tommy Hilfiger, we drove strong consumer engagement and continued to increase product strength and improve newness in our assortment, leading to more full-priced selling and less end-of-season clearance sales, which fueled significant gross margin expansion.”

Larsson continued, “Step by step, we continue to build strength in product, consumer engagement and marketplace execution, supported by the build out of our data and demand-driven supply chain. North America continues to be a strong proof point, in Europe we are on plan with our targeted quality of sales initiatives, and in Asia Pacific, we continue to drive strong brand engagement to win the big consumer moments. Looking ahead, as we navigate an increasingly challenging global macroeconomic backdrop, we remain relentlessly focused on delivering brand-accretive, long-term growth.”

Zac Coughlin, Chief Financial Officer, said, “We drove strong gross margin and operating margin expansion in the second quarter and are reaffirming our revenue and non-GAAP operating margin guidance, reflecting our disciplined execution of the PVH+ Plan. We remain relentlessly focused on driving efficiencies, maintaining cost discipline and simplifying how we work globally. Powered by our two iconic brands, we have a multi-year unlock opportunity to generate sustainable, profitable growth and strong cash flows, while maximizing returns for shareholders over the long-term.”

Non-GAAP Amounts:

Amounts stated to be on a non-GAAP basis exclude the items that are defined or described in greater detail near the end of this release under the heading “Non-GAAP Exclusions.” Amounts stated on a constant currency basis also are deemed to be on a non-GAAP basis. Reconciliations of amounts on a GAAP basis to amounts on a non-GAAP basis are presented after the Non-GAAP Exclusions section and identify and quantify all excluded items.

Second Quarter Review:

• Revenue decreased 6% compared to the prior year period (decreased 5% on a constant currency basis), including a 3% decline resulting from the sale of the Heritage Brands women’s intimates business in November 2023. Overall revenue in the Company’s international businesses decreased 4% compared to the prior year period (decreased 3% on a constant currency basis), primarily due to the challenging consumer environment in Asia Pacific, particularly in China and Australia, and the continuation of the Company’s planned strategic reduction in sales in Europe to drive overall higher quality of sales in the region. In North America, revenue in the Tommy Hilfiger and Calvin Klein businesses combined increased 1% compared to the prior year period, with modest growth in the wholesale business and a low single-digit decline in the direct-to-consumer business.
  • Direct-to-consumer revenue decreased 5% compared to the prior year period (decreased 3% on a constant currency basis). Revenue in the Company’s owned and operated stores decreased 4% compared to the prior year period (decreased 3% on a constant currency basis), primarily driven by recent softness in the consumer backdrop. Revenue in the Company’s owned and operated digital commerce business declined 6% compared to the prior year period (declined 5% on a constant currency basis), primarily due to the continuation of the Company’s planned strategic reduction in Europe.
  • Wholesale revenue decreased 9% compared to the prior year period (decreased 8% on a constant currency basis), primarily due to a 7% reduction resulting from the sale of the Heritage Brands women's intimates business. The remaining decline reflects the continued strategic reduction in revenue in Europe to drive overall higher quality of sales in the region.
• Gross margin increased 250 basis points to 60.1% compared to 57.6% in the prior year period. The significant increase reflects benefits from a favorable shift in channel mix, a reduction in sales to lower margin wholesale accounts, and lower product costs.
• Inventory decreased 12% compared to the prior year period.

Second Quarter Consolidated Results:

• Revenue of $2.074 billion decreased 6% compared to $2.207 billion in the prior year period (decreased 5% on a constant currency basis), including a 3% decline resulting from the sale of the Heritage Brands women’s intimates business.
  • Tommy Hilfiger revenue decreased 4% compared to the prior year period (decreased 3% on a constant currency basis).
    • Tommy Hilfiger International revenue decreased 6% (decreased 5% on a constant currency basis) as the revenue decline in Europe discussed above weighs more heavily on the Tommy Hilfiger business.
    • Tommy Hilfiger North America revenue increased 1%.
  • Calvin Klein revenue decreased 1% compared to the prior year period (flat on a constant currency basis).
    • Calvin Klein International revenue decreased 2% (flat on a constant currency basis).
    • Calvin Klein North America revenue increased 1%.
  • Heritage Brands revenue decreased 60% compared to the prior year period, which included a 56% decrease resulting from the sale of the Heritage Brands women's intimates business.
• Earnings before interest and taxes (“EBIT”) on a GAAP basis was $174 million, inclusive of a $4 million negative impact attributable to foreign currency translation, compared to $143 million in the prior year period. EBIT on a GAAP basis included costs of $15 million in the current quarter and costs of $39 million in the prior year period described under the heading “Non-GAAP Exclusions” later in this release. EBIT on a non-GAAP basis for these periods excludes these amounts.
  
  EBIT on a non-GAAP basis was $189 million, inclusive of a $4 million negative impact attributable to foreign currency translation, compared to $182 million in the prior year period. The gross margin improvement discussed above more than offset the impact of the revenue decline in the quarter. The Company continues to take a disciplined approach to managing expenses, driving cost efficiencies while making targeted investments to drive its strategic initiatives.

• Earnings per share (“EPS”)

• GAAP basis: $2.80 compared to $1.50 in the prior year period.
• Non-GAAP basis: $3.01 compared to $1.98 in the prior year period.

EPS on both a GAAP and a non-GAAP basis for the second quarter of 2024 includes the negative impact of $0.07 per share related to foreign currency translation.

EPS on a GAAP basis for these periods also included the amounts for the applicable period described under the heading “Non-GAAP Exclusions” later in this release. EPS on a non-GAAP basis for these periods excluded these amounts.

• Interest expense decreased to $19 million from $24 million in the prior year period.
• Effective tax rate was (2.1)% on a GAAP basis as compared to 21.3% in the prior year period. The effective tax rate was (0.1)% on a non-GAAP basis as compared to 21.6% in the prior year period. The decline in the tax rates on a GAAP and non-GAAP basis compared to the prior year period is primarily due to a tax benefit in the current quarter related to the favorable settlement of a multi-year audit in an international jurisdiction.

Stock Repurchase Program:

Delivering on its commitment under the PVH+ Plan to return excess cash to stockholders, the Company repurchased 200,000 shares of its common stock for $25 million during the second quarter of 2024, bringing total share repurchases for the first six months of 2024 to 2.1 million shares for $225 million. The Company currently expects to make common stock repurchases under the stock repurchase program of approximately $400 million for the full year 2024.

2024 Outlook:

Full Year 2024 Guidance

• Revenue: Reaffirming projected decrease of 6% to 7% as compared to 2023 (decrease 6% to 7% on a constant currency basis), inclusive of a 2% reduction resulting from the sale of the Heritage Brands women’s intimates business and a 1% reduction from the 53rd week in 2023.
• Operating margin
  • GAAP basis: Projected to be approximately 9.8% compared to 10.1% in 2023. Previous guidance was approximately flat to 2023.
  • Non-GAAP basis: Reaffirming outlook of approximately flat compared to 10.1% in 2023.

Operating margin on a GAAP basis for these periods include the amounts described under the heading “Non-GAAP Exclusions” later in this release. Operating margin on a non-GAAP basis exclude these amounts.

• EPS
  • GAAP basis: Projected to be in a range of $11.20 to $11.45 compared to $10.76 in 2023. Previous guidance was a range of $11.15 to $11.40.
  • Non-GAAP basis: Projected to be in a range of $11.55 to $11.80 compared to $10.68 in 2023. Previous guidance was a range of $11.00 to $11.25.

The 2024 EPS projections include the estimated negative impact of approximately $0.05 per share related to foreign currency translation.

EPS on a GAAP basis for these periods also include the amounts described under the heading “Non-GAAP Exclusions” later in this release. EPS on a non-GAAP basis exclude these amounts.

• Interest expense is projected to decrease to approximately $70 million as compared to $88 million in 2023, primarily due to the repayment in 2023 of the $100 million 7 3/4% debentures and an increase in interest income. Previous guidance was approximately $75 million.
• Effective tax rate is projected to be approximately 16%, with the decrease from previous guidance of approximately 20% primarily attributable to the tax benefit resulting from the favorable settlement of the multi-year audit in an international jurisdiction.

Third Quarter 2024 Guidance

• Revenue is projected to decrease 6% to 7% as compared to the third quarter of 2023 (decrease 7% to 8% on a constant currency basis), inclusive of a reduction of 2% resulting from the sale of the Heritage Brands women's intimates business.
• EPS
  • GAAP basis: Approximately $2.30 compared to $2.66 in the prior year period.
  • Non-GAAP basis: Approximately $2.50 compared to $2.90 in the prior year period.

The third quarter EPS projections include the estimated positive impact of approximately $0.05 per share related to foreign currency translation.

EPS on a GAAP basis for these periods also include the amounts described under the heading “Non-GAAP Exclusions” later in this release. EPS on a non-GAAP basis exclude these amounts.

• Interest expense is projected to decrease to approximately $17 million compared to $22 million in the third quarter of 2023.
• Effective tax rate is projected to be approximately 23%.

Please see the section entitled “Full Year and Quarterly Reconciliations of GAAP to Non-GAAP Amounts” at the end of this release for further detail and reconciliations of GAAP to non-GAAP amounts discussed in this section.

Non-GAAP Exclusions:

The discussions in this release that refer to non-GAAP amounts exclude the following:

• Pre-tax restructuring costs totaling approximately $35 million incurred and expected to be incurred in 2024 consisting principally of severance related to the Company’s multi-year initiative to simplify its operating model by centralizing processes and improving systems and automation to drive more efficient, cost-effective ways of working across the organization, of which $15 million was incurred in the second quarter, approximately $15 million is expected to be incurred in the third quarter, and approximately $5 million is expected to be incurred in the fourth quarter.
• Pre-tax gain of $10 million recorded in the first quarter of 2024 in connection with the Company’s sale of the Heritage Brands women’s intimates business.
• Pre-tax gain of $46 million recorded in the fourth quarter of 2023 related to the recognized actuarial gain on retirement plans.
• Pre-tax net gain of $13 million recorded in the fourth quarter of 2023 in connection with the sale of the Company’s Heritage Brands women's intimates business, which includes a gain on the sale, less costs to sell, and severance and other termination benefits associated with the transaction.
• Pre-tax restructuring costs of $61 million incurred in 2023 consisting principally of severance related to actions taken in the second and third quarters of 2023 under the plans initially announced in August 2022 to reduce people costs in the Company’s global offices by approximately 10% by the end of 2023, of which $39 million was incurred in the second quarter, $19 million was incurred in the third quarter and $4 million was incurred in the fourth quarter.
• Estimated tax effects associated with the above pre-tax items, which are based on the Company’s assessment of deductibility. In making this assessment, the Company evaluated each item that it had identified above as a non-GAAP exclusion to determine if such item was (i) taxable or tax deductible, in which case the tax effect was taken at the applicable income tax rate in the local jurisdiction, or (ii) non-taxable or non-deductible, in which case the Company assumed no tax effect.

The Company presents constant currency revenue information, which is a non-GAAP financial measure, because it is a global company that transacts business in multiple currencies and reports financial information in U.S. dollars. Foreign currency exchange rate fluctuations affect the amounts reported by the Company in U.S. dollars with respect to its foreign revenues and can have a significant impact on the Company’s reported revenues. The Company calculates constant currency revenue information by translating its foreign revenues for the relevant period into U.S. dollars at the average exchange rates in effect during the comparable prior year period (rather than at the actual exchange rates in effect during the relevant period).

The Company presents non-GAAP financial measures, including constant currency revenue information, as a supplement to its GAAP results. The Company believes presenting non-GAAP financial measures provides useful information to investors, as it provides information to assess how its businesses performed excluding the effects of non-recurring and non-operational amounts and the effects of changes in foreign currency exchange rates, as applicable, and (i) facilitates comparing the results being reported against past and future results by eliminating amounts that it believes are not comparable between periods and (ii) assists investors in evaluating the effectiveness of the Company’s operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. The Company believes that investors often look at ongoing operations of an enterprise as a measure of assessing performance. The Company uses its results excluding these amounts to evaluate its operating performance and to discuss its business with investment institutions, the Company’s Board of Directors and others. The Company’s results excluding non-recurring and non-operational amounts are also the basis for certain incentive compensation calculations. Non-GAAP financial measures should be viewed in addition to, and not in lieu of or as superior to, the Company’s operating performance calculated in accordance with GAAP. The non-GAAP financial measures presented may not be comparable to similarly described measures reported by other companies.

Please see tables 1 through 5 and the sections entitled “Reconciliations of Constant Currency Revenue” and “Full Year and Quarterly Reconciliations of GAAP to Non-GAAP Amounts” later in this release for reconciliations of GAAP to non-GAAP amounts.

Conference Call Information:

The Company will host a conference call to discuss its second quarter earnings release on Wednesday, August 28 at 9:00 a.m. EDT. Please log on to the Company’s website at www.PVH.com and go to the Events page in the Investors section to listen to the live webcast of the conference call. The webcast will be available for replay for one year after it is held. Please log on to www.PVH.com as described above to listen to the replay. The conference call and webcast consist of copyrighted material. They may not be re-recorded, reproduced, re-transmitted, rebroadcast or otherwise used without the Company’s express written permission. Your participation represents your consent to these terms and conditions, which are governed by New York law.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Forward-looking statements in this press release and made during the conference call/webcast, including, without limitation, statements relating to the Company’s future revenue, earnings, plans, strategies, objectives, expectations and intentions are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy, and some of which might not be anticipated, including, without limitation, (i) the Company’s plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) the Company’s ability to realize anticipated benefits and savings from divestitures, restructurings and similar plans, such as the headcount cost reduction initiative announced in August 2022, the 2021 sale of assets of, and exit from, its Heritage Brands menswear and retail businesses, and the November 2023 sale of the Heritage Brands women’s intimate apparel business to focus on its Calvin Klein and Tommy Hilfiger businesses; (iii) the ability to realize the intended benefits from the acquisition of licensees or the reversion of licensed rights (such as the announced, in-process plan to bring in-house most of the product categories that are or had been licensed to G-III Apparel Group, Ltd. upon the expirations over time of the underlying license agreements) and avoid any disruptions in the businesses during the transition from operation by the licensee to the direct operation by us; (iv) the Company has significant levels of outstanding debt and borrowing capacity and uses a significant portion of its cash flows to service its indebtedness, as a result of which the Company might not have sufficient funds to operate its businesses in the manner it intends or has operated in the past; (v) the levels of sales of the Company’s apparel, footwear and related products, both to its wholesale customers and in its retail stores and its directly operated digital commerce sites, the levels of sales of the Company’s licensees at wholesale and retail, and the extent of discounts and promotional pricing in which the Company and its licensees and other business partners are required to engage, all of which can be affected by weather conditions, changes in the economy (including inflationary pressures like those currently being experienced globally), fuel prices, reductions in travel, fashion trends, consolidations, repositionings and bankruptcies in the retail industries, consumer sentiment and other factors; (vi) the Company’s ability to manage its growth and inventory; (vii) quota restrictions, the imposition of safeguard controls and the imposition of new or increased duties or tariffs on goods from the countries where the Company or its licensees produce goods under its trademarks, any of which, among other things, could limit the ability to produce products in cost-effective countries, or in countries that have the labor and technical expertise needed, or require the Company to absorb costs or try to pass costs onto consumers, which could materially impact the Company’s revenue and profitability; (viii) the availability and cost of raw materials; (ix) the Company’s ability to adjust timely to changes in trade regulations and the migration and development of manufacturers (which can affect where the Company’s products can best be produced); (x) the regulation or prohibition of the transaction of business with specific individuals or entities and their affiliates or goods manufactured in (or containing raw materials or components from) certain regions, such as the listing of a person or entity as a Specially Designated National or Blocked Person by the U.S. Department of the Treasury’s Office of Foreign Assets Control and the issuance of Withhold Release Orders by the U.S. Customs and Border Protection; (xi) changes in available factory and shipping capacity, wage and shipping cost escalation, and store closures in any of the countries where the Company’s or its licensees’ or wholesale customers’ or other business partners’ stores are located or products are sold or produced or are planned to be sold or produced, as a result of civil conflict, war or terrorist acts, the threat of any of the foregoing, or political or labor instability, such as the current war in Ukraine that led to the Company’s exit from its retail business in Russia and the cessation of its wholesale operations in Russia and Belarus, and the temporary cessation of business by many of its business partners in Ukraine; (xii) disease epidemics and health-related concerns, such as the recent COVID-19 pandemic, which could result in (and, in the case of the COVID-19 pandemic, did result in some of the following) supply-chain disruptions due to closed factories, reduced workforces and production capacity, shipping delays, container and trucker shortages, port congestion and other logistics problems, closed stores, and reduced consumer traffic and purchasing, or governments implement mandatory business closures, travel restrictions or the like, and market or other changes that could result in shortages of inventory available to be delivered to the Company’s stores and customers, order cancellations and lost sales, as well as in noncash impairments of the Company’s goodwill and other intangible assets, operating lease right-of-use assets, and property, plant and equipment; (xiii) actions taken towards sustainability and social and environmental responsibility as part of the Company’s sustainability and social and environmental strategy may not be achieved or may be perceived to be falsely claimed, which could diminish consumer trust in the Company’s brands, as well as the Company’s brands’ values; (xiv) the failure of the Company’s licensees to market successfully licensed products or to preserve the value of the Company’s brands, or their misuse of the Company’s brands; (xv) significant fluctuations of the U.S. dollar against foreign currencies in which the Company transacts significant levels of business; (xvi) the Company’s retirement plan expenses recorded throughout the year are calculated using actuarial valuations that incorporate assumptions and estimates about financial market, economic and demographic conditions, and differences between estimated and actual results give rise to gains and losses, which can be significant, that are recorded immediately in earnings, generally in the fourth quarter of the year; (xvii) the impact of new and revised tax legislation and regulations; and (xviii) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”).

This press release includes, and the conference call/webcast will include, certain non-GAAP financial measures, as defined under SEC rules. Reconciliations of these measures are included in the financial information following this Safe Harbor Statement, as well as in the Company’s Current Report on Form 8-K furnished to the SEC in connection with this earnings release, which is available on the Company’s website at www.PVH.com and on the SEC’s website at www.sec.gov.

The Company does not undertake any obligation to update publicly any forward-looking statement, including, without limitation, any estimate regarding revenue or earnings, whether as a result of the receipt of new information, future events or otherwise.

PVH CORP.
Consolidated GAAP Statements of Operations
(In millions, except per share data)

		Quarter Ended									Six Months Ended
		8/4/24				7/30/23					8/4/24			7/30/23
Net sales		$	1,965.1			$	2,105.2				$	3,815.3		$	4,156.3
Royalty revenue			87.7				80.1					168.9			164.8
Advertising and other revenue			21.5				21.7					42.0			43.8
Total revenue		$	2,074.3			$	2,207.0				$	4,026.2		$	4,364.9
Gross profit		$	1,245.9			$	1,272.3				$	2,444.6		$	2,522.6
Selling, general and administrative expenses			1,083.3				1,138.5					2,100.6			2,202.5
Non-service related pension and postretirement income			0.4				0.3					0.9			0.9
Other gain			—				—					10.0			—
Equity in net income of unconsolidated affiliates			10.9				9.2					24.1			21.1
Earnings before interest and taxes			173.9				143.3					379.0			342.1
Interest expense, net			19.1				23.6					36.8			45.6
Pre-tax income			154.8				119.7					342.2			296.5
Income tax (benefit) expense			(3.2	)			25.5					32.8			66.3
Net income		$	158.0			$	94.2				$	309.4		$	230.2
Diluted net income per common share (1)		$	2.80			$	1.50				$	5.39		$	3.65
		Quarter Ended									Six Months Ended
		8/4/24				7/30/23					8/4/24			7/30/23
Depreciation and amortization expense		$	69.8			$	75.5				$	141.9		$	147.8

Please see following pages for information related to non-GAAP measures discussed in this release.

(1)

Please see Note A in Notes to Consolidated GAAP Statements of Operations for the reconciliations of GAAP diluted net income per common share to diluted net income per common share on a non-GAAP basis.

PVH CORP.
Non-GAAP Measures

The Company believes it is useful to investors to present its results for the periods ended August 4, 2024 and July 30, 2023 on a non-GAAP basis by excluding (i) the restructuring costs incurred in the second quarter of 2024 related to the Company's multi-year initiative to simplify its operating model by centralizing processes and improving systems and automation to drive more efficient, cost-effective ways of working across the organization (the "Growth Driver 5 Actions"), consisting principally of severance; (ii) the pre-tax gain recorded in the first quarter of 2024 in connection with the sale of the Company’s Heritage Brands women's intimates business (the "Heritage Brands intimates transaction"); (iii) the restructuring costs incurred in the second quarter of 2023 related to actions taken in July 2023 under the plans announced in August 2022 to reduce people costs in the Company’s global offices by approximately 10% by the end of 2023 (the “2022 cost savings initiative”), consisting principally of severance; and (iv) the tax effects associated with the foregoing pre-tax items. The Company excludes these amounts because it deems them to be non-recurring or non-operational and believes that their exclusion (i) facilitates comparing the results being reported against past and future results by eliminating amounts that it believes are not comparable between periods, thereby permitting management to evaluate performance and investors to make decisions based on the ongoing operations of the Company, and (ii) assists investors in evaluating the effectiveness of the Company’s operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. The Company believes that investors often look at ongoing operations of an enterprise as a measure of assessing performance. The Company uses its results excluding these amounts to evaluate its operating performance and to discuss its business with investment institutions, the Company’s Board of Directors and others. The Company’s results excluding the items described above are also the basis for certain incentive compensation calculations. The non-GAAP measures should be viewed in addition to, and not in lieu of or superior to, the Company’s operating performance measures calculated in accordance with GAAP. The information presented on a non-GAAP basis may not be comparable to similarly titled measures reported by other companies.

The following table presents the non-GAAP measures that are discussed in this release. Please see Tables 1 through 5 for the reconciliations of the GAAP amounts to amounts on a non-GAAP basis.

		Quarter Ended									Six Months Ended
		8/4/24				7/30/23					8/4/24			7/30/23
Non-GAAP Measures
Selling, general and administrative expenses (1)		$	1,068.0			$	1,099.5				$	2,085.3		$	2,163.5
Other gain (2)												—
Earnings before interest and taxes (3)			189.2				182.3					384.3			381.1
Income tax (benefit) expense (4)			(0.1	)			34.3					34.4			75.1
Net income (5)			170.2				124.4					313.1			260.4
Diluted net income per common share (6)		$	3.01			$	1.98				$	5.45		$	4.13

(1)		Please see Table 3 for the reconciliations of GAAP selling, general and administrative (“SG&A”) expenses to SG&A expenses on a non-GAAP basis.
(2)		Please see Table 4 for the reconciliation of GAAP other gain to other gain on a non-GAAP basis.
(3)		Please see Table 2 for the reconciliations of GAAP earnings before interest and taxes to earnings before interest and taxes on a non-GAAP basis.
(4)		Please see Table 5 for the reconciliations of GAAP income tax (benefit) expense to income tax (benefit) expense on a non-GAAP basis and an explanation of the calculation of the tax effects associated with the pre-tax items identified as a non-GAAP exclusions.
(5)		Please see Table 1 for the reconciliations of GAAP net income to net income on a non-GAAP basis.
(6)		Please see Note A in Notes to Consolidated GAAP Statements of Operations for the reconciliations of GAAP diluted net income per common share to diluted net income per common share on a non-GAAP basis.

PVH CORP.
Reconciliations of GAAP to Non-GAAP Amounts
(In millions, except per share data)

Table 1 - Reconciliations of GAAP net income to net income on a non-GAAP basis
		Quarter Ended										Six Months Ended
		8/4/24				7/30/23						8/4/24				7/30/23
Net income		$	158.0			$	94.2					$	309.4			$	230.2
Diluted net income per common share (1)		$	2.80			$	1.50					$	5.39			$	3.65
Pre-tax items excluded:
SG&A expenses associated with the 2022 cost savings initiative							39.0										39.0
SG&A expenses associated with the Growth Driver 5 Actions			15.3										15.3
Gain in connection with the Heritage Brands intimates transaction (recorded in other gain)													(10.0	)
Tax effect of the pre-tax items above (2)			(3.1	)			(8.8	)					(1.6	)			(8.8	)
Net income on a non-GAAP basis		$	170.2			$	124.4					$	313.1			$	260.4
Diluted net income per common share on a non-GAAP basis (1)		$	3.01			$	1.98					$	5.45			$	4.13

(1)		Please see Note A in Notes to the Consolidated GAAP Statements of Operations for the reconciliations of GAAP diluted net income per common share to diluted net income per common share on a non-GAAP basis.
(2)		Please see Table 5 for an explanation of the calculation of the tax effects of the above items.

Table 2 - Reconciliations of GAAP earnings before interest and taxes to earnings before interest and taxes on a non-GAAP basis
		Quarter Ended								Six Months Ended
		8/4/24			7/30/23					8/4/24				7/30/23
Earnings before interest and taxes		$	173.9		$	143.3				$	379.0			$	342.1
Items excluded:
SG&A expenses associated with the 2022 cost savings initiative						39.0									39.0
SG&A expenses associated with the Growth Driver 5 Actions			15.3								15.3
Gain in connection with the Heritage Brands intimates transaction (recorded in other gain)											(10.0	)
Earnings before interest and taxes on a non-GAAP basis		$	189.2		$	182.3				$	384.3			$	381.1

Table 3 - Reconciliations of GAAP SG&A expenses to SG&A expenses on a non-GAAP basis
		Quarter Ended										Six Months Ended
		8/4/24				7/30/23						8/4/24				7/30/23
SG&A expenses		$	1,083.3			$	1,138.5					$	2,100.6			$	2,202.5
Items excluded:
Expenses associated with the 2022 cost savings initiative							(39.0	)									(39.0	)
Expenses associated with the Growth Driver 5 Actions			(15.3	)									(15.3	)
SG&A expenses on a non-GAAP basis		$	1,068.0			$	1,099.5					$	2,085.3			$	2,163.5

PVH CORP.
Reconciliations of GAAP to Non-GAAP Amounts (continued)
(In millions, except per share data)

Table 4 - Reconciliation of GAAP other gain to other gain on a non-GAAP basis
		Six Months Ended
		8/4/24
Other gain		$	10.0
Item excluded:
Gain in connection with the Heritage Brands intimates transaction			(10.0	)
Other gain on a non-GAAP basis		$	—

Table 5 - Reconciliations of GAAP income tax (benefit) expense to income tax (benefit) expense on a non-GAAP basis
		Quarter Ended									Six Months Ended
		8/4/24				7/30/23					8/4/24			7/30/23
Income tax (benefit) expense		$	(3.2	)		$	25.5				$	32.8		$	66.3
Item excluded:
Tax effect of pre-tax items identified as non-GAAP exclusions (1)			3.1				8.8					1.6			8.8
Income tax (benefit) expense on a non-GAAP basis		$	(0.1	)		$	34.3				$	34.4		$	75.1

(1)

The estimated tax effects associated with the Company’s exclusions on a non-GAAP basis are based on the Company’s assessment of deductibility. In making this assessment, the Company evaluates each pre-tax item that it has identified as a non-GAAP exclusion to determine if such item is (i) taxable or tax deductible, in which case the tax effect is taken at the applicable income tax rate in the local jurisdiction, or (ii) non-taxable or non-deductible, in which case the Company assumes no tax effect.

PVH CORP.
Notes to Consolidated GAAP Statements of Operations
(In millions, except per share data)

A. The Company computed its diluted net income per common share as follows:

		Quarter Ended												Quarter Ended
		8/4/24												7/30/23
		GAAP							Non-GAAP					GAAP							Non-GAAP
		Results			Adjustments (1)				Results					Results			Adjustments (2)				Results
Net income		$	158.0		$	(12.2	)		$	170.2				$	94.2		$	(30.2	)		$	124.4
Weighted average common shares			55.9							55.9					62.1							62.1
Weighted average dilutive securities			0.6							0.6					0.6							0.6
Total shares			56.5							56.5					62.7							62.7
Diluted net income per common share		$	2.80						$	3.01				$	1.50						$	1.98

		Six Months Ended												Six Months Ended
		8/4/24												7/30/23
		GAAP							Non-GAAP					GAAP							Non-GAAP
		Results			Adjustments (1)				Results					Results			Adjustments (2)				Results
Net income		$	309.4		$	(3.7	)		$	313.1				$	230.2		$	(30.2	)		$	260.4
Weighted average common shares			56.7							56.7					62.4							62.4
Weighted average dilutive securities			0.7							0.7					0.7							0.7
Total shares			57.4							57.4					63.1							63.1
Diluted net income per common share		$	5.39						$	5.45				$	3.65						$	4.13

(1)		Represents the impact on net income in the applicable periods ended August 4, 2024 from the elimination of (i) the restructuring costs related to the Growth Driver 5 Actions; (ii) the pre-tax gain recorded in connection with the Heritage Brands intimates transaction; and (iii) the tax effects associated with the foregoing pre-tax items. Please see Table 1 for the reconciliations of GAAP net income to net income on a non-GAAP basis.
(2)		Represents the impact on net income in the periods ended July 30, 2023 from the elimination of (i) the restructuring costs related to the 2022 cost savings initiative; and (ii) the tax effects associated with the foregoing pre-tax item. Please see Table 1 for the reconciliations of GAAP net income to net income on a non-GAAP basis.

PVH CORP.
Consolidated Balance Sheets
(In millions)

	8/4/24			7/30/23
ASSETS
Current Assets:
Cash and Cash Equivalents	$	610.0		$	372.8
Receivables		906.9			910.0
Inventories		1,582.8			1,795.5
Other		314.7			335.8
Total Current Assets		3,414.4			3,414.1
Property, Plant and Equipment		806.9			876.0
Operating Lease Right-of-Use Assets		1,224.0			1,291.2
Goodwill and Other Intangible Assets		5,424.5			5,586.5
Other Assets		367.9			374.6
TOTAL ASSETS	$	11,237.7		$	11,542.4
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts Payable and Accrued Expenses	$	1,938.1		$	2,090.9
Current Portion of Operating Lease Liabilities		302.8			328.6
Short-Term Borrowings		8.4			15.2
Current Portion of Long-Term Debt		510.8			688.9
Other Liabilities		548.5			624.7
Long-Term Portion of Operating Lease Liabilities		1,069.1			1,136.9
Long-Term Debt		1,668.2			1,619.6
Stockholders’ Equity		5,191.8			5,037.6
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	11,237.7		$	11,542.4

Note: Year over year balances are impacted by changes in foreign currency exchange rates.

PVH CORP.
Segment Data
(In millions)

REVENUE BY SEGMENT
		Quarter Ended					Quarter Ended
		8/4/24					7/30/23
Tommy Hilfiger North America
Net sales		$	296.2				$	297.6
Royalty revenue			22.8					18.5
Advertising and other revenue			4.4					4.3
Total			323.4					320.4
Tommy Hilfiger International
Net sales			750.8					800.2
Royalty revenue			14.5					13.9
Advertising and other revenue			4.7					4.7
Total			770.0					818.8
Total Tommy Hilfiger
Net sales			1,047.0					1,097.8
Royalty revenue			37.3					32.4
Advertising and other revenue			9.1					9.0
Total			1,093.4					1,139.2
Calvin Klein North America
Net sales			269.7					269.9
Royalty revenue			39.0					34.4
Advertising and other revenue			9.7					10.5
Total			318.4					314.8
Calvin Klein International
Net sales			597.9					610.3
Royalty revenue			11.4					13.0
Advertising and other revenue			2.6					2.1
Total			611.9					625.4
Total Calvin Klein
Net sales			867.6					880.2
Royalty revenue			50.4					47.4
Advertising and other revenue			12.3					12.6
Total			930.3					940.2
Heritage Brands Wholesale
Net sales			50.5					127.2
Royalty revenue			—					0.3
Advertising and other revenue			0.1					0.1
Total			50.6					127.6
Total Revenue
Net sales			1,965.1					2,105.2
Royalty revenue			87.7					80.1
Advertising and other revenue			21.5					21.7
Total		$	2,074.3				$	2,207.0

PVH CORP.
Segment Data (continued)
(In millions)

EARNINGS BEFORE INTEREST AND TAXES BY SEGMENT
		Quarter Ended														Quarter Ended
		8/4/24														7/30/23
		Results														Results
		Under								Non-GAAP						Under								Non-GAAP
		GAAP				Adjustments (1)				Results						GAAP				Adjustments (2)				Results
Tommy Hilfiger North America		$	34.3			$	(1.4	)		$	35.7					$	13.2			$	(6.4	)		$	19.6
Tommy Hilfiger International			67.7				(7.3	)			75.0						73.4				(12.3	)			85.7
Total Tommy Hilfiger			102.0				(8.7	)			110.7						86.6				(18.7	)			105.3
Calvin Klein North America			37.8				(1.4	)			39.2						20.4				(5.9	)			26.3
Calvin Klein International			74.8				(5.2	)			80.0						80.2				(8.5	)			88.7
Total Calvin Klein			112.6				(6.6	)			119.2						100.6				(14.4	)			115.0
Heritage Brands Wholesale			6.6				—				6.6						2.6				(4.6	)			7.2
Corporate			(47.3	)			—				(47.3	)					(46.5	)			(1.3	)			(45.2	)
Total earnings before interest and taxes		$	173.9			$	(15.3	)		$	189.2					$	143.3			$	(39.0	)		$	182.3

(1)		The adjustments for the quarter ended August 4, 2024 represent the elimination of the restructuring costs related to the Growth Driver 5 Actions.
(2)		The adjustments for the quarter ended July 30, 2023 represent the elimination of the restructuring costs related to the 2022 cost savings initiative.

PVH CORP.
Segment Data (continued)
(In millions)

REVENUE BY SEGMENT
		Six Months Ended					Six Months Ended
		8/4/24					7/30/23
Tommy Hilfiger North America
Net sales		$	567.6				$	564.3
Royalty revenue			43.5					38.8
Advertising and other revenue			9.0					8.8
Total			620.1					611.9
Tommy Hilfiger International
Net sales			1,450.8					1,613.0
Royalty revenue			27.8					29.6
Advertising and other revenue			8.0					9.0
Total			1,486.6					1,651.6
Total Tommy Hilfiger
Net sales			2,018.4					2,177.3
Royalty revenue			71.3					68.4
Advertising and other revenue			17.0					17.8
Total			2,106.7					2,263.5
Calvin Klein North America
Net sales			509.4					497.6
Royalty revenue			74.7					70.1
Advertising and other revenue			19.6					21.4
Total			603.7					589.1
Calvin Klein International
Net sales			1,185.3					1,208.6
Royalty revenue			22.8					25.8
Advertising and other revenue			5.3					4.4
Total			1,213.4					1,238.8
Total Calvin Klein
Net sales			1,694.7					1,706.2
Royalty revenue			97.5					95.9
Advertising and other revenue			24.9					25.8
Total			1,817.1					1,827.9
Heritage Brands Wholesale
Net sales			102.2					272.8
Royalty revenue			0.1					0.5
Advertising and other revenue			0.1					0.2
Total			102.4					273.5
Total Revenue
Net sales			3,815.3					4,156.3
Royalty revenue			168.9					164.8
Advertising and other revenue			42.0					43.8
Total		$	4,026.2				$	4,364.9

PVH CORP.
Segment Data (continued)
(In millions)

EARNINGS BEFORE INTEREST AND TAXES BY SEGMENT
		Six Months Ended														Six Months Ended
		8/4/24														7/30/23
		Results														Results
		Under								Non-GAAP						Under								Non-GAAP
		GAAP				Adjustments (1)				Results						GAAP				Adjustments (2)				Results
Tommy Hilfiger North America		$	58.7			$	(1.4	)		$	60.1					$	15.5			$	(6.4	)		$	21.9
Tommy Hilfiger International			144.1				(7.3	)			151.4						199.7				(12.3	)			212.0
Total Tommy Hilfiger			202.8				(8.7	)			211.5						215.2				(18.7	)			233.9
Calvin Klein North America			74.4				(1.4	)			75.8						22.6				(5.9	)			28.5
Calvin Klein International			171.2				(5.2	)			176.4						180.6				(8.5	)			189.1
Total Calvin Klein			245.6				(6.6	)			252.2						203.2				(14.4	)			217.6
Heritage Brands Wholesale			22.9				10.0				12.9						17.6				(4.6	)			22.2
Corporate			(92.3	)			—				(92.3	)					(93.9	)			(1.3	)			(92.6	)
Total earnings before interest and taxes		$	379.0			$	(5.3	)		$	384.3					$	342.1			$	(39.0	)		$	381.1

(1)		The adjustments for the six months ended August 4, 2024 represent (i) the elimination of the restructuring costs related to the Growth Driver 5 Actions and (ii) the elimination of the gain recorded in connection with the Heritage Brands intimates transaction.
(2)		The adjustments for the six months ended July 30, 2023 represent the elimination of the restructuring costs related to the 2022 cost savings initiative.

PVH CORP.
Reconciliations of Constant Currency Revenue
(In millions)

As a supplement to the Company’s reported operating results, the Company presents constant currency revenue information, which is a non-GAAP financial measure. The Company presents results in this manner because it is a global company that transacts business in multiple currencies and reports financial information in U.S. dollars. Foreign currency exchange rate fluctuations affect the amounts reported by the Company in U.S. dollars with respect to its foreign revenues. Exchange rate fluctuations can have a significant impact on reported revenues. The Company believes presenting constant currency revenue information provides useful information to investors, as it provides information to assess how its businesses performed excluding the effects of changes in foreign currency exchange rates and assists investors in evaluating the effectiveness of the Company’s operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance.

The Company calculates constant currency revenue information by translating its foreign revenues for the relevant period into U.S. dollars at the average exchange rates in effect during the comparable prior year period (rather than at the actual exchange rates in effect during the relevant period).

Constant currency performance should be viewed in addition to, and not in lieu of or as superior to, the Company’s operating performance calculated in accordance with GAAP. The constant currency revenue information presented may not be comparable to similarly described measures reported by other companies.

		GAAP Revenue						% Change
		Quarter Ended						GAAP			Negative Impact of Foreign Exchange			Constant Currency
		8/4/24			7/30/23
Tommy Hilfiger International		$	770.0		$	818.8		(6.0	)%		(1.4	)%		(4.6	)%
Total Tommy Hilfiger			1,093.4			1,139.2		(4.0	)%		(1.1	)%		(2.9	)%
Calvin Klein International			611.9			625.4		(2.2	)%		(2.0	)%		(0.2	)%
Total Calvin Klein			930.3			940.2		(1.1	)%		(1.4	)%		0.3	%
Total International Revenue			1,381.9			1,444.2		(4.3	)%		(1.6	)%		(2.7	)%
Total Revenue		$	2,074.3		$	2,207.0		(6.0	)%		(1.1	)%		(4.9	)%
Owned and Operated Retail Stores		$	836.4		$	872.2		(4.1	)%		(1.6	)%		(2.5	)%
Owned and Operated Digital Commerce			180.7			193.1		(6.4	)%		(1.6	)%		(4.8	)%
Total Direct-to-Consumer		$	1,017.1		$	1,065.3		(4.5	)%		(1.6	)%		(2.9	)%
Wholesale		$	948.0		$	1,039.9		(8.8	)%		(0.8	)%		(8.0	)%

PVH CORP.
Full Year and Quarterly Reconciliations of GAAP to Non-GAAP Amounts

The Company is presenting its 2024 estimated results on a non-GAAP basis by excluding (i) the restructuring costs incurred and expected to be incurred related to the Growth Driver 5 Actions, consisting primarily of severance, (ii) the pre-tax gain recorded in the first quarter of 2024 in connection with the Company’s sale of the Heritage Brands women’s intimates business and (iii) the estimated tax effects associated with the foregoing pre-tax items.

The 2024 estimated results are presented on both a GAAP and non-GAAP basis. The Company believes presenting these results on a non-GAAP basis provides useful additional information to investors. The Company excludes such amounts that it deems to be non-recurring or non-operational and believes that excluding them (i) facilitates comparing the results being reported against past and future results by eliminating amounts that it believes are not comparable between periods, thereby permitting management to evaluate performance and investors to make decisions based on the ongoing operations of the Company, and (ii) assists investors in evaluating the effectiveness of the Company’s operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. The Company uses its results excluding these amounts to evaluate its operating performance and to discuss its business with investment institutions, the Company’s Board of Directors and others. The Company’s results excluding the items described above are also the basis for certain incentive compensation calculations. The non-GAAP measures should be viewed in addition to, and not in lieu of or superior to, the Company’s operating performance measures calculated in accordance with GAAP. The information presented on a non-GAAP basis may not be comparable to similarly titled measures reported by other companies.

The estimated tax effects associated with the above pre-tax items are based on the Company’s assessment of deductibility. In making this assessment, the Company evaluated each pre-tax item identified above as a non-GAAP exclusion to determine if such item is taxable or tax deductible, and, if so, in what jurisdiction the tax expense or tax deduction would occur. All of the pretax items identified as non-GAAP exclusions were identified as either primarily taxable or tax deductible, with the tax effect taken at the applicable income tax rate in the local jurisdiction, or as non-taxable or non-deductible, in which case the Company assumed no tax effect.

2024 Net Income Per Common Share Reconciliations
		Current Guidance				Previous Guidance
		Full Year 2024 (Estimated)		Third Quarter 2024 (Estimated)		Full Year 2024 (Estimated)
GAAP net income per common share		$11.20 to $11.45		Approximately $2.30		$11.15 to $11.40
Estimated per common share impact of items identified as non-GAAP exclusions		$(0.35)		$(0.20)		$0.15
Net income per common share on a Non-GAAP basis		$11.55 to $11.80		Approximately $2.50		$11.00 to $11.25

The GAAP net income per common share amounts presented in the above table, as well as the amounts excluded in providing non GAAP earnings guidance, would be expected to change as a result of (i) acquisition, divestment or similar transactions or activities, (ii) the timing and strategy of restructuring and integration initiatives or other one-time events, such as the Growth Driver 5 Actions, that the Company engages in or suffers during the period, (iii) any market or other changes affecting the Company’s expected actuarial gain or loss on retirement plans, including the recent volatility in the financial markets, or (iv) any discrete tax events including changes in tax rates or tax law and events arising from audits or the resolution of uncertain tax positions.

PVH CORP.
Full Year and Quarterly Reconciliations of GAAP to Non-GAAP Amounts (continued)

2024 Operating Margin Reconciliation
		Current Guidance
		Full Year 2024 (Estimated)
GAAP operating margin		Approximately 9.8%
Estimated impact of items identified as non-GAAP exclusions		(0.3)%
Operating margin on a Non-GAAP basis		Approximately 10.1%

Reconciliations of 2024 Constant Currency Revenue Guidance
	Full Year 2024 (Estimated)		Third Quarter 2024 (Estimated)
GAAP revenue decrease	(6)% to (7)%		(6)% to (7)%
Positive impact of foreign exchange	—%		1%
Non-GAAP revenue decrease on a constant currency basis	(6)% to (7)%		(7)% to (8 )%

Please refer to the section entitled "Reconciliations of Constant Currency Revenue” on page 17 this release for a description of the presentation of constant currency amounts.

Reconciliations of GAAP Diluted Net Income Per Common Share to Diluted Net Income Per Common Share on a Non-GAAP Basis
		Full Year 2023									Third Quarter 2023
		(Actual)									(Actual)
(In millions, except per share data)		Results Under GAAP			Adjustments (1)			Non-GAAP Results			Results Under GAAP			Adjustments (2)				Non-GAAP Results
Net income		$	663.6		$	4.7		$	658.9		$	161.6		$	(14.8	)		$	176.4
Total weighted average shares			61.7						61.7			60.8							60.8
Diluted net income per common share		$	10.76					$	10.68		$	2.66						$	2.90

(1)		Represents the impact on net income in the year ended February 4, 2024 from the elimination of (i) a $46 million recognized actuarial gain on retirement plans in the fourth quarter of 2023; (ii) the $15 million gain recorded in connection with the Heritage Brands intimates transaction in the fourth quarter of 2023; (iii) $2 million of costs related to the Heritage Brands intimates transaction incurred in the fourth quarter of 2023; (iv) $61 million of restructuring costs related to the 2022 cost savings initiative incurred in the second, third and fourth quarters of 2023; and (v) a $7 million tax benefit associated with the foregoing pre-tax items.
(2)		Represents the impact on net income in the quarter ended October 29, 2023 from the elimination of (i) $19 million of restructuring costs related to the 2022 cost savings initiative; and (ii) a $4 million tax benefit associated with the foregoing pre-tax item.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240827501476/en/

Investor Contact:

Sheryl Freeman

investorrelations@pvh.com



Media Contact:

communications@pvh.com

Source: PVH Corp.

FAQ

What were PVH Corp.'s Q2 2024 earnings?

PVH reported GAAP EPS of $2.80 and non-GAAP EPS of $3.01, both exceeding the projected $2.25.

How did PVH Corp.'s revenue perform in Q2 2024?

PVH's Q2 2024 revenue declined by 6% to $2.074 billion, in line with guidance.

What is PVH Corp.'s full-year 2024 revenue outlook?

PVH reaffirmed a projected revenue decrease of 6%-7% for the full year 2024.

What is PVH Corp.'s full-year 2024 EPS guidance?

PVH raised its full-year GAAP EPS guidance to $11.20-$11.45 and non-GAAP EPS guidance to $11.55-$11.80.

What impacted PVH Corp.'s Q2 2024 gross margin?

PVH's Q2 2024 gross margin increased by 250 basis points to 60.1%, driven by favorable channel mix and lower product costs.

What were the key factors in PVH Corp.'s Q2 2024 revenue decline?

The 6% revenue decline included a 3% impact from selling the Heritage Brands women's intimates business.